UTI is launching an open-ended MIP- Regular Income Scheme. The scheme does not offer assured returns. The initial offer is open from 12th September 2002 to 11th October 2002. It is an open-end debt oriented scheme with no assured returns. The minimum investment in the scheme is Rs.10,000. And subsequent investment in multiples of Rs.1,000.
The scheme aims at distributing income periodically. It would mainly invest in debt (minimum: 90%, maximum:100%) of which at least 90% would be in AA and above rated papers at the time of investment. The balance 10% would be invested in equities from the universe of BSE Sensex, BSE-100, S&P SNX Nifty and Nifty Junior. The scheme offers two options - Growth and Dividend. The scheme also offers dividend reinvestment, but payout is compulsorily reinvested, if the value of investment falls below Rs.30,000. Systematic Withdrawal Plan (SWP) is available under the Growth Plan. The minimum investment for joining the SWP is Rs.50,000 and Rs.25,000 for monthly and quarterly withdrawals respectively. One can withdraw a minimum of Rs.300 under the SWP Plan. The scheme would charge an entry load not more than 2% and an exit load not more than 1% if redeemed within 3 months.